Microsoft has announced significant price hikes for its Xbox consoles across Europe and the UK. The Xbox Series S is seeing a 43% increase, going from €349.99 / £299.99 to €499.99 / £429.99, while the Xbox Series X with disc drive will cost an extra €200, rising from €599.99 / £499.99 to a hefty €799.99 / £669.99. The 1TB Xbox Series S Digital Edition is also seeing a rise, jumping from €399.99 / £349.99 to €599.99 / £519.99.

This is the third price increase since May 2025 and marks a dramatic shift for the console market. The 1TB Xbox Series X now costs $300 more than its initial release price of $499.99 in 2020, raising questions about whether these increases are justified by cost of production or simply to boost profits.

The 2TB model is being phased out due to storage constraints, highlighting the ongoing challenges faced by console manufacturers as they balance the demands of modern gaming and limited supply chains. While other consoles have seen price hikes too, none have been as drastic as Microsoft’s.

For consumers, these price increases could mean a tough decision on whether to hold off on purchases or accept the cost increase for the latest models. Meanwhile, the AI industry continues to drive up costs of components, making gaming hardware more expensive even as it promises higher performance and capabilities.